Group 1 Thomas Beauchemin
Justine BohelayCamille Bruzeau
Iona Casta Magny Dan Assous
Margaux Bervas
KEY CONCEPTS
= €-ESTABLISHMENT OF A FREE SERVICE
HIGH NUMBER OF USERS
PROPOSE PREMIUM FUNCTIONALITIES
CONVERT A PART OF FREE USERS INTO PREMIUM USERS
FUND THE FREE SERVICE BY THE PREMIUM SERVICE
KEY CONCEPTSTo create a Freemium Business Model:
-The target market has to be important
-The Premium service has to provide a real added value compared to the Free service
-The cost of the Free service must be low
-Need to find a good strategy to convert free users into premium users
WHY HAS FREEMIUM STARTED?
With the commercialization of internet people got used to getting access to more things without paying
Ancestor of « Freemium » : Shareware (1980)
Emerged as a model where product/service is available for free trial but with restrictions (functionability, availability, convenience..)
Freemium concept appeared later in the mid 2000 First recorded use of the term : Venture capitalist Fred Wilson in 2006
The Freemium model than shifted to other sectors :• video games (free-to-play games such as League of Legends or World of
Warcraft)• phone applications that generates tons of money (Candy Crush,
Evernote…)
HOW DO WE TRANSFER FREE IN MONEY?
-Several ways to transform free into money
-Most common way: advertising
-Other systems: motivation to buy Premium version after free “Lite” Version
HOW DO WE TRANSFER FREE IN MONEY?
-In-App purchaseso Improvementso New data
-Free services created to sell after gain of recognition
WHAT ARE THE DIFFERENT MODELS OF VALUATION OF CONTENT?
• Advertising model
• Subscription model
the values are reinforcing the customer’s experience
examples: customers subscribe on-line for the New York Times or for Music etc.
• Media model
• Servicing your audience
provide the product quality for costumers.
one of the models that create most profits for companies
WHAT ARE THE DIFFERENT MODELS OF VALUATION OF CONTENT?
• Games model
• Virtual goods
non-physical objects and money purchased for use in online communities or games
• Virtual currency
anything that can be used (gold, lindens) to purchase items & upgrades within the economy for a given game
• Software
• Web services
WHAT IS THE RELATIONSHIP BETWEEN FEE AND VALUE
In every day language :-The value is the usefulness or desirability of good or service, how much you love it or what it is “worth to me”.
-A fee is an amount paid in order to access a particular service or right.
In economic language :-The value is how much usefulness or pleasure an individual gets from a commodity or service.
-A fee can be charged to the customer in order for them to access an additional content of the product / service and improve its experience.
WHAT IS THE RELATIONSHIP BETWEEN FEE AND VALUE
Relationship between fee and value
The product gains value Because of this high value, the customer is ready to pay for it = a fee
= the more the product is worth for the customer, the more he is ready to pay a fee for an improvement.
AQUAMIUM
What is Aquamium ?
Aquamium is a pool which is free for everybody, but has some constraints. However, If users want to remove these constraints and have an access to slides, Jacuzzi or sauna it is necessary to pay.
When ? : from March to JulyWhere ? : In EuropeFor Who? : Everybody between 3 and 80 years old
AQUAMIUM
NB : Segways are available for moving in the aquatic centre. They are waterproof.
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